"Suncor recognizes that the oil sands resource we develop is owned by the people of Alberta, and Albertans have the right to benefit economically through royalties," said Rick George, president and chief executive officer. "However, the royalty regime changes proposed by the Alberta government are substantial and could have a significant impact on industry economics. We will need time to study the changes and their potential impact on our business."

The government outlined plans to work with Suncor to reach an agreement on a transition plan to the new royalty framework.

"As an oil sands pioneer and a proud Alberta company, we will work with the government to find the right solution for Suncor and the people of Alberta," said George.

Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66® brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.